YM BioSciences Reports Operational and Financial Results for the Second Quarter of Fiscal 2013 PR Newswire MISSISSAUGA, ON, Feb. 7, 2013 MISSISSAUGA, ON, Feb. 7, 2013 /PRNewswire/ - YM BioSciences Inc. (NYSE MKT: YMI) (TSX: YM), today reported operational and financial results for the second quarter of fiscal 2013, ended December 31, 2012. During the quarter, YM announced a plan of arrangement (the "Arrangement") involving the Company, Gilead Sciences, Inc. ("Gilead") and 3268218 Nova Scotia Limited, a wholly-owned subsidiary of Gilead (the "Purchaser"). Under the Arrangement, the Purchaser will acquire all of the issued and outstanding common shares ("Common Shares") of the Company for cash consideration of U.S.$2.95 per Common Share. In addition, holders of warrants and options will each receive a cash payment equal to the difference between U.S.$2.95 and the exercise price of such warrants or options. The Supreme Court of Nova Scotia has issued a final order approving the Arrangement and assuming all other conditions precedent are satisfied or waived, it is anticipated that the Arrangement will become effective on February 8, 2013. Summary Financial Results (CDN dollars) The interim consolidated financial statements and comparative information for the second quarter of fiscal 2013 have been prepared in accordance with International Financial Reporting Standards ("IFRS"). Revenue for the second quarter of fiscal 2013 ending December 31, 2012 was $3.9 million compared to $0.4 million for the second quarter of fiscal 2012 ending December 31, 2011. Revenue for the first six months of fiscal 2013 was $4.2 million compared to $0.6 million for the first six months of fiscal 2012. The increase was due to the sale of nimotuzumab licenses and subsequent recognition of all remaining deferred revenue relating to nimotuzumab licenses in December 2012. Net finance costs were $5.8 million for the second quarter of fiscal 2013 compared to net finance income of $1.5 million for the second quarter of fiscal 2012. Net finance costs were $5.5 million for the first six months of fiscal 2013 compared to net finance income of $9.0 million for the first six months of fiscal 2012. The changes in net finance income are primarily attributable to changes in the fair value adjustment for USD warrants. Under IFRS, warrants denominated in a different currency than the Company's functional currency must be classified as a financial liability and measured at fair value, with changes reflected in profit or loss. For the second quarter of fiscal 2013, the Company realized a loss of $6.6 million on the revaluation of warrants, compared to a gain of $1.9 million for the second quarter of fiscal 2012. For the first six months of fiscal 2013, the Company realized a loss of $5.0 million on the revaluation of warrants, compared to a gain of $7.3 million for the first six months of fiscal 2012. Licensing and product development expenses were $6.1 million for the second quarter of fiscal 2013 compared with $7.3 million for the second quarter of fiscal 2012. Licensing and product development expenses were $13.3 million for the first six months of fiscal 2013 compared with $13.7 million for the first six months of fiscal 2012. Licensing and product development expenses are primarily associated with the clinical trials for CYT387. General and administrative expenses were $3.3 million for the second quarter of fiscal 2013 compared to $1.2 million for the second quarter of fiscal 2012. General and administrative expenses were $5.3 million for the first six months of fiscal 2013 compared to $3.3 million for the first six months of fiscal 2012. The increases in both the three and six months ending December 31, 2013, are due to the additional legal and other costs relating to CYT387 and the Acquisition Agreement. Net loss for the second quarter of fiscal 2013 was $11.3 million ($0.07 per share) compared to $6.6 million ($0.06 per share) for the same period last year. Net loss for the first six months of fiscal 2013 was $20.0 million ($0.13 per share) compared to $7.5 million ($0.06 per share) for the same period last year. As at December 31, 2012 the Company had cash and short-term deposits totaling $121.2 million and accounts payable and accrued liabilities totaling $5.3 million compared to $132.5 million and $3.1 million respectively as at June 30, 2012. As at December 31, 2012 the Company had 157,967,659 common shares and 7,008,751 warrants outstanding. About YM BioSciences YM BioSciences Inc. is a drug development company primarily focused on advancing CYT387, an orally administered inhibitor of both the JAK1 and JAK2 kinases, which have been implicated in a number of hematological and immune cell disorders including myeloproliferative neoplasms and inflammatory diseases as well as certain cancers. Positive results have been reported from a Phase I/II trial of CYT387 in 166 patients with myelofibrosis. This press release may contain forward-looking statements, which reflect YM's current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, YM's ability to obtain other approvals in connection with the proposed arrangement; uncertainties as to the timing of the arrangement; the satisfaction of the conditions precedent to the completion of the arrangement; changing market conditions; the successful and timely completion of clinical studies; the establishment of corporate alliances; the impact of competitive products and pricing; new product development; uncertainties related to the regulatory approval process or the ability to obtain drug product in sufficient quantity or at standards acceptable to health regulatory authorities to complete clinical trials or to meet commercial demand; and other risks detailed from time to time in YM's ongoing quarterly and annual reporting. Except as required by applicable securities laws, YM undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. YM BIOSCIENCES INC. Condensed Consolidated Interim Statements of Financial Position (Expressed in Canadian dollars, unless otherwise noted) (Unaudited) December 31, June 30, 2012 2012 Assets Current assets: Cash and cash equivalents $ 83,588,628 $ 87,140,020 Short-term deposits 37,628,393 45,310,288 Accounts receivable 342,394 252,884 Prepaid expenses 84,984 257,780 Total current assets 121,644,399 132,960,972 Non-current assets: Property and equipment 49,096 62,118 Intangible assets 375,674 2,629,682 Total non-current assets 424,770 2,691,800 Total assets $ 122,069,169 $ 135,652,772 Liabilities and Equity Current liabilities: Accounts payable $ 1,124,770 $ 803,421 Accrued liabilities 4,164,545 2,262,972 Share purchase warrants 11,593,961 7,221,040 Deferred revenue - 381,270 Total current liabilities 16,883,276 10,668,703 Non-current liabilities: Deferred revenue - 1,556,853 Total non-current liabilities - 1,556,853 Equity: Share capital 341,491,581 340,173,078 Contributed surplus 17,015,594 16,712,315 Deficit (253,321,282) (233,458,177) Total equity 105,185,893 123,427,216 Subsequent events Total liabilities and equity $ 122,069,169 $ 135,652,772 Approved by the Board and authorized for issue on February 6, 2013: Tryon M. Williams, Director Dr. Nick Glover, Director YM BIOSCIENCES INC. Condensed Consolidated Interim Statements of Loss and Comprehensive Loss (Expressed in Canadian dollars, unless otherwise noted) (Unaudited) Three months ended Six months ended December 31, December 31, 2012 2011 2012 2011 Revenue: Out-licensing $ 1,866,563 $ 380,117 $ 2,176,708 $ 630,845 Sale of Nimotuzumab licenses 1,989,800 - 1,989,800 - 3,856,363 380,117 4,166,508 630,845 Expenses: Licensing and product development 6,081,713 7,260,481 13,285,560 13,748,328 General and administrative 3,255,177 1,154,883 5,276,876 3,315,031 9,336,890 8,415,364 18,562,436 17,063,359 Loss before the undernoted (5,480,527) (8,035,247) (14,395,928) (16,432,514) Finance income 784,671 2,058,174 567,365 8,980,046 Finance costs (6,617,681) (580,705) (6,034,542) - Net loss and comprehensive loss $ $ for the period (11,313,537) $ (6,557,778) (19,863,105) $(7,452,468) Basic and diluted loss per common $ $ share (0.07) $ (0.06) (0.13) $ (0.06) YM BIOSCIENCES INC. Condensed Consolidated Interim Statements of Changes in Equity (Expressed in Canadian dollars, unless otherwise noted) (Unaudited) Share capital Contributed Number Amount surplus Deficit Total Balance, June 30, $ 2012 157,546,793 $ 340,173,078 16,712,315 $ (233,458,177) $ 123,427,216 Capital transactions Net loss for the period - - - (19,863,105) (19,863,105) Transactions affecting owners of the Company, recognized directly in equity: Share-based compensation - - 369,479 - 369,479 Shares issued on exerciseof options 63,199 163,170 (66,200) - 96,970 Shares issued on exercise of warrants 357,667 564,270 - - 564,270 Fair value of warrants exercised - 591,063 - 591,063 Total transactions affecting owners of the Company 420,866 1,318,503 303,279 - 1,621,782 Balance, December 31, 2012 157,967,659 $ 341,491,581 $ 17,015,594 $ (253,321,282) $ 105,185,893 Share capital Contributed Number Amount surplus Deficit Total Balance, June 30, 2011 116,681,948 $ 264,548,643 $ 15,144,062 $ (213,141,438) $ 66,551,267 Capital transactions Net loss for the period - - - (7,452,468) (7,452,468) Transactions affecting owners of the Company, recognized directlyin equity: Share-based compensation - - 1,507,684 - 1,507,684 Shares issued on exercise of options 29,500 38,008 (15,558) - 22,450 Total transactions affecting owners of the Company 29,500 38,008 1,492,126 - 1,530,134 Balance, December 31, 2011 116,711,448 $ 264,586,651 $ 16,636,188 $ (220,593,906) $ 60,628,933 YM BIOSCIENCES INC. Condensed Consolidated Interim Statements of Cash Flows (Expressed in Canadian dollars, unless otherwise noted) (Unaudited) Six months ended December 31, 2012 2011 Cash provided by (used in): Operating activities: Net loss for the period $ (19,863,105) $ (7,452,468) Items not involving cash: Depreciation of property and equipment 21,095 33,134 Amortization of intangible assets 2,254,008 2,254,008 Interest earned (567,365) (309,168) Gain on disposal of property and equipment (10,636) - Unrealized (gain)loss on cash and cash equivalents (233,885) (1,406,658) Share-based compensation 369,479 1,507,684 Change in fair value of share purchase warrants 4,963,984 (7,264,221) Changes in non-cash working capital balances: Short-term deposits (275,927) (305,277) Accounts receivable (89,510) (78,535) Prepaid expenses 172,796 240,064 Accounts payable 321,349 (181,892) Accrued liabilities 1,901,573 (482,473) Deferred revenue (1,938,123) (297,036) Net cash used in operating activities (12,974,267) (13,742,838) Investing activities: Proceeds from sale of short-term deposits 35,457,822 35,806,437 Purchase of short-term deposits (27,500,000) (34,300,000) Interest earned 567,365 309,168 Additions to property and equipment (18,537) (10,220) Proceeds from sale of property and equipment 21,100 - Net cash provided by investing activities 8,527,750 1,805,385 Financing activities: Issuance of common shares on exercise of options 96,970 22,450 Issuance of common shares on exercise of warrants 564,270 - Net cash provided by financing activities 661,240 22,450 Decrease in cash and cash equivalents (3,785,277) (11,915,003) Impact of foreign exchange rates on cash 233,885 1,406,658 Cash and cash equivalents, beginning of period 87,140,020 32,046,630 Cash and cash equivalents, end of period $ 83,588,628 $ 21,538,285 SOURCE YM BioSciences Inc. Contact: Enquiries: James Smith VP Corporate Affairs YM BioSciences Inc. Tel. +1 905.361.9518 email@example.com
YM BioSciences Reports Operational and Financial Results for the Second Quarter of Fiscal 2013
Press spacebar to pause and continue. Press esc to stop.